Pharmaceutical Logistics Market

Global Pharmaceutical Logistics Market:

The global pharmaceutical logistics market size reached USD 91.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 154.0 Billion by 2033, exhibiting a growth rate (CAGR) of 5.96% during 2025-2033. The rising need for efficient and reliable logistics networks, the development of medical facilities across rural and geographically extended locations, and significant growth in the pharmaceutical industry represent some of the key factors driving the market.

Pharmaceutical Logistics Market Analysis:

• Major Market Drivers: Rapid growth in the pharmaceutical sector and the increasing need for specialty medicines on account of the rising prevalence of various chronic diseases are some of the pharmaceutical logistics market recent opportunities. 
• Key Market Trends: The escalating demand for temperature-sensitive products, coupled with the need to maintain the integrity of the cold chain, is one of the significant key trends propelling the pharmaceutical logistics market growth.
• Geographical Landscape: According to the pharmaceutical logistics market report by IMARC, Europe was the largest market for pharmaceutical logistics. Some of the factors driving the Europe pharmaceutical logistics market included the continuous developments in the healthcare infrastructure, the advent of modern technologies, and rapid urbanization. 
• Competitive Landscape: Some of the leading pharmaceutical logistics market companies include C.H. Robinson Worldwide Inc., CEVA Logistics, DB Schenker., Deutsche Post AG, DSV A/S, FedEx Corporation, Kuehne + Nagel, Nippon Express Co. Ltd., SF Express Co. Ltd., and United Parcel Service, among many others. 
• Challenges and Opportunities: The pharmaceutical logistics market faces challenges, including stringent regulations for temperature-sensitive products, complex supply chains, and the inflating need for specialized handling and storage. However, these challenges present opportunities for companies to innovate and develop advanced cold chain technologies, improve visibility and tracking through digital solutions, and enhance efficiency in distribution networks.
   

Pharmaceutical Logistics Market Trends:

Increasing Prevalence of Infectious Diseases

The rising cases of various chronic ailments across the world are augmenting the demand for medicines and drugs. According to the World Health Organization (WHO), chronic diseases are the leading cause of death worldwide. Ischemic heart disease alone was responsible for about 8.89 million deaths in 2019. However, all cardiovascular diseases together cause around 17.9 million deaths annually. Such rising incidences of diseases are bolstering the demand for pharmaceutical vaccines, drugs, and medicines, which in turn is catalyzing the market for efficient pharmaceutical logistics. Furthermore, various key market players are increasingly investing in developing robust, fast-paced, and cost-effective logistics systems via sea routes to cater to the escalating demand. The transportation of pharma products by sea reduces the transportation cost by up to 80% and reduces staffing requirements. Additionally, it conserves the packaging and storage needs while reducing the carbon footprint of logistics operations. Moreover, the rising geriatric population across the globe, which is more prone to developing age-related diseases, is also contributing to the growth of the pharmaceutical logistics market. According to the United Nations Population Division, the number of persons aged 65 and older is expected to double over the next three decades, reaching 1.6 billion in 2050. Such a massive increase in the geriatric population is projected to propel the pharmaceutical logistics market share in the coming years. 

Increasing Demand for Cold Chain Logistics in the Sector

The increasing demand for specialty, personalized, and temperature-sensitive vaccines is catalyzing the market for cold chain logistics. In addition to this, the implementation of stringent government regulations to maintain accurate temperatures for highly temperature-sensitive pharmaceutical products is also contributing to the market growth. As a result, various key market players are significantly investing in cold chain logistics to cater to this demand. For instance, in November 2022, Celcius Logistics, India's fastest-growing cold-chain marketplace startup, launched Hyper-Local temperature-controlled delivery services for pharma orders across nine cities in the country. In addition to this, various pharmaceutical logistic providers are also integrating advanced technologies with logistics to maintain real-time pharma cold chain visibility and logistics management. For instance, in February 2024, Sensitech, a leading provider of supply chain visibility solutions, launched TempTale GEO X, a state-of-the-art IoT temperature monitoring solution. TempTale GEO X delivers a validated, GxP-compliant solution to monitor temperature-sensitive medicines and vaccines transported globally across different modes, including air, ocean, road, and rail. Such initiatives are projected to bolster the pharmaceutical logistics market revenue over the forecasted period.

Emerging Trend of On-Demand Delivery

The on-demand healthcare industry is rapidly expanding in response to the advancement of technology. Additionally, with the improved accessibility and practical treatment options, the practice of receiving healthcare services at home has become more common throughout the pandemic and is currently growing. Various key market players have introduced on-demand medicine delivery apps, which have made it possible for patients to receive their medications promptly without leaving the comfort of their homes. This innovation not only offers convenience but also ensures that healthcare services are accessible to everyone, irrespective of their geographical location. For instance, Hyperlocal Cloud delivery solution is a specialized marketplace that creates tailored solutions for local delivery needs, including medicine delivery. Their platform leverages cutting-edge cloud technology to ensure swift, secure, and scalable service. They focus on providing seamless integration with local pharmacies to enable efficient inventory management, real-time tracking, and personalized customer experiences. In line with this, Amazon Pharmacy announced the expansion of its services by offering same-day delivery for prescriptions in New York and Los Angeles. Customers who require medication to treat "common conditions" like the flu, high blood pressure, and diabetes can access the service to have the medication delivered within hours. Such innovations in the delivery of pharma products are further bolstering the growth of the market. 

Global Pharmaceutical Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global pharmaceutical logistics market, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on type, component and application.

Type Insights:

• Non-Cold Chain
• Cold Chain
   

Non-cold chain represents the largest segment

The report has provided a detailed breakup and analysis of the pharmaceutical logistics market based on the type. This includes non-cold chain and cold chain. According to the report, non-cold chain represented the largest segment.

Non-cold chain pharmaceutical logistics refer to the transportation, storage, and distribution of pharmaceutical products that do not require strict temperature control throughout their supply chain. Examples include many oral medications, tablets, and capsules that can be stored and transported at room temperature without significant risk of degradation. The rising preference for over-the-counter (OTC) medications, such as vitamins, minerals, and supplement (VMS) medicines, for the common cold and cough, gastrointestinal drugs, and various other common flus is contributing to the segment's expansion.

Component Insights: 

• Storage
  • Warehouse
  • Refrigerated Container 
• Transportation
  • Sea Freight Logistics 
  • Airfreight Logistics
  • Overland Logistics
• Monitoring
  • Hardware
  • Software
     

Storage accounts for the largest market share

A detailed breakup and analysis of the pharmaceutical logistics market based on the component has also been provided in the report. This includes storage (warehouse and refrigerated container), transportation (sea freight logistics, airfreight logistics, and overland logistic) and monitoring (hardware and software). According to the report, storage accounted for the largest market share.

In pharmaceutical logistics, warehouses play a crucial role in storing and managing pharmaceutical products. These facilities are designed to meet stringent regulatory requirements, to ensure product safety and integrity. Refrigerated containers are used to transport temperature-sensitive pharmaceutical products. These containers are equipped with refrigeration units to maintain the required temperature throughout transit. Various key market players are significantly investing in refrigerated contains to cater to the escalating demand for temperature sensitive drugs and vaccines. For instance, in April 2022, Tower Cold Chain launched KT Evolution container, with reliable thermal protection and reusable durability for pharmaceutical transport.

Application Insights:

• Bio Pharma
• Chemical Pharma 
• Specialty Pharma
   

Chemical pharma exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the pharmaceutical logistics market based on the application. This includes bio pharma, chemical pharma and specialty pharma. According to the report, chemical pharma exhibited a clear dominance in the market.

Chemical pharmaceuticals, refers to pharmaceutical products that are synthesized chemically rather than being derived from natural sources. Chemical pharma includes a wide range of medications, such as antibiotics, antivirals, analgesics, and many others. These products play a crucial role in modern medicine and are used to treat various chronic medical conditions and improve health outcomes.

Regional Insights: 

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa
   

Europe holds the largest market share for pharmaceutical logistics

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe was the largest market for pharmaceutical logistics.

Some of the factors driving the Europe pharmaceutical logistics market included the continuous developments in the healthcare infrastructure, the advent of modern technologies, rapid urbanization, etc. Furthermore, various pharmaceutical companies are entering the European markets to expand their consumer base and increase sales. For instance, in October 2023, UPS Healthcare announced the launch of UPS Pickup Point locations, a new reverse logistics service for health laboratory customers, across the UK, Germany, Italy, France, and Spain. Such investments in the region are anticipated to cater to the growth of Europe in the coming years.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• C.H. Robinson Worldwide Inc.
• CEVA Logistics
• DB Schenker.
• Deutsche Post AG
• DSV A/S
• FedEx Corporation
• Kuehne + Nagel
• Nippon Express Co. Ltd.
• SF Express Co. Ltd.
• United Parcel Service
   

(Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report)

Pharmaceutical Logistics Market Recent Developments

• April 2024: Cardinal Health commenced the construction of a new 350,000-square-foot logistics center in Columbus, Ohio, that will serve as a centralized replenishment center for the distribution of over-the-counter consumer health products in support of its core pharmaceutical business.
• March 2024: Active pharmaceutical ingredients (APIs) manufacturer, Noramco, announced the launch of Noramco Group, a North American pharmaceutical supply chain services provider.
• November 2023: Kuehne + Nagel received IATA CEIV Pharma certification for its entire air logistics healthcare network. Moreover, with this, Kuehne + Nagel is positioned as the first logistics company to achieve over 100 CEIV Pharma-certified stations.

Global Pharmaceutical Logistics Market Report Scope:

Key Questions Answered in This Report:

• How has the global pharmaceutical logistics market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global pharmaceutical logistics market?
• What is the impact of each driver, restraint, and opportunity on the global pharmaceutical logistics market?
• What are the key regional markets?
• Which countries represent the most attractive pharmaceutical logistics market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the pharmaceutical logistics market?
• What is the breakup of the market based on the component?
• Which is the most attractive component in the pharmaceutical logistics market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the pharmaceutical logistics market?
• What is the competitive structure of the global pharmaceutical logistics market?
• Who are the key players/companies in the global pharmaceutical logistics market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the pharmaceutical logistics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global pharmaceutical logistics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region. 
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the pharmaceutical logistics industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.